Income from Business or Profession

This query is : Resolved

C.A. Sandeep Wawhal (Querist)
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24 March 2011 Dear Expers,

Please tell,
interest and remuneration received from partnership firm is taxable for that partner and it is deductible for firm ?
If firm have disallowed this expenses through add-back process, then it is required to mention this in partners return ?
I think if mentioned, there is twice payment of tax for interest and remuneration portion

thank you

CA. Lohith Jagadeesh

CA. Lohith Jagadeesh (Expert)
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24 March 2011 Hi,

To the extent it is added back to the Firm's Income , the same shall not be treated as Income of the Partner.

Thank you,

Regards
CA. Lohith. J
B.Com,ACA,CS,(ICWA),SAPM Hons,ITF Hons

C.A. Sandeep Wawhal

C.A. Sandeep Wawhal (Querist)
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24 March 2011 what is correct procedure for this.it's really required to add back ?

CA. Lohith Jagadeesh

CA. Lohith Jagadeesh (Expert)
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24 March 2011 Hi,

As per Sec 40b the excess amount needs to be disallowed i.e. needs to be added back to the Partnership Firm.

Once that is Done, to the extent of the Amount of Expenditure allowed to the Partnership firm shall become the Income of the Partner regardless of How much was Actually paid to Such Partner/s

Thank You,

Regards
CA. Lohith.J
B.Com,ACA,CS(ICWA),SAPM Hons,ITF Hons

C.A. Sandeep Wawhal

C.A. Sandeep Wawhal (Querist)
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25 March 2011 thank you sir ....

CA. Lohith Jagadeesh

CA. Lohith Jagadeesh (Expert)
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26 March 2011 Hi,

You are Welcome

If you have any issues, please do join my community " Lo Aca " so that there are other partners of mine who would be able to assist you to resolve your doubts.

Thank You,

Regards
CA. Lohith. J
B.Com,ACA,CS,(ICWA),SAPM Hons,ITF Hons

C.A. Sandeep Wawhal

C.A. Sandeep Wawhal (Querist)
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26 March 2011 Dear Lohit Jagadeesh sir, I have joined this community, thank you for this.

CA. Lohith Jagadeesh

CA. Lohith Jagadeesh (Expert)
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26 March 2011 Hi,

Thanks for Joining the Community

Thank You,

Regards
CA. Lohith.J
B.Com,ACA,CS(ICWA),SAPM Hons,ITF Hons

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